Virage Plays Integral Role in Technology Enhancement For Military Intelligence

SAN MATEO, Calif. - November 29, 2000 - Virage, Inc. [NASDAQ: VRGE], a leading provider of software products and application services that enable video for the Internet, announced today that Autometric, Inc., a Boeing company, has selected the Virage Internet Video Application Platform as the foundation for the US government project VORTEX (Video On-line Retrieval Technology for Exploitation). This initiative will upgrade existing commercial video data management capability and specialize it for military intelligence purposes. Autometric, as Systems Integrator on the project, will rely on Virage technology as the essential component for a comprehensive solution that will improve the military's existing method of information gathering and analyzing.

The VORTEX project will maximize the benefits of streaming video that is gathered from Unmanned Aerial Vehicles by enabling its contents to be accessed, exploited, and archived for intelligence purposes. According to Curt Osterheld of Autometric, "Virage is playing a critical part in making this a viable tool and bringing the capability to the intelligence consumer. We have selected Virage because their technology will allow the government to make tremendous strides in intelligence gathering procedures. Their solution makes this vision possible." The Virage-enabled solution, further enhanced by DSMC, Inc., will automatically intake and archive the video stream to ensure immediate access to incoming data that is organized and indexed for instantaneous evaluation by the military.

DSMCi, an integrator of multi-media management technology, will extend the current Virage platform by developing a video data management system that fits effectively and specifically into the VORTEX plan. The new enhancement will replace the archaic technique of analyzing still photographs that are taken from the aircraft. As live video is gathered, the images are simultaneously encoded, indexed, and stored for future use. VORTEX will permit the government to utilize the resulting video by searching and retrieving clips that are relevant to a particular task or function, thus reducing time spent viewing and increasing reaction time during operations. The Virage Internet Video Application Platform will serve as the foundation for this development within the government's current technology.

"We are very excited that Virage has been selected to play such an important role for this project," said Virage chairman and CEO Paul Lego. "Video has traditionally been an important, but hard to manage, information source. Our extensible platform enables the U.S. government to improve the way it obtains and utilizes video for intelligence gathering purposes. The successful completion of the VORTEX project should significantly enhance the military's strategic decision-making process." Osterheld added, "This partnership demonstrates how current techniques can be easily extended to improve government and military vision."

About Autometric, Inc.
Autometric offers a full range of products and services for end-to-end solutions related to modeling, visualization, simulation and production of digital imagery and associated geographical products. Autometric delivers and supports integrated solutions to meet a wide range of customer requirements. With over forty years in landmark achievement in visual technology-from the surveying of the Apollo lunar landing sites, exploiting early satellite imagery from space to the 3D modeling and visualization of radioactive particle transport in the atmosphere-Autometric brings a rich legacy of information technologies and services to bear on your imaging needs. From space operations to theater combat, from interactive terrain visualization to human character animation, Autometric is changing the way you look at the world around you. By compiling the latest in processing and display hardware with state-of-the-art visualization software, Autometric is changing the way the world makes decisions with dramatic implications not only for the present but also well into the next century.

About DSMCi, Inc.
Founded in 1995, DSMCi has positioned itself as the integrator of multi-media management technology delivering the most intelligent systems to store, manage and access large media libraries. DSMCi is a leader in integration of the best hardware and software technology available, creating advanced multi-media management systems that provide our clients with the tools to leverage their diverse media libraries, resulting in a substantial return on investment. Contact DSMCi at http://www.dsmci.com/ or (301) 572-5122.

About Virage, Inc.
Headquartered in San Mateo, CA, Virage is the leading provider of solutions that enable video for strategic online applications. The Virage Internet Video Application Platform transforms video into an effective online medium that is easy to publish, manage and distribute on the Internet or corporate Intranets. The Virage platform provides content owners with the complete infrastructure for seamlessly integrating streaming video into business, entertainment and information applications. From ABC to Yahoo! over 180 customers across a broad range of markets have turned to Virage to help them improve production efficiencies and create new revenue opportunities with video. Contact Virage at http://www.virage.com/ or (650) 573-3210.